The veneer producer Ta Ann Tasmania says it is business as usual, despite the Upper House delaying the implementation of the forest peace deal.

The Malaysian-owned company had warned it would leave the state if the agreement did not become law.

The enacting legislation has since been referred to a Parliamentary committee and the inquiry is expected to take at least three months.

Ta Ann will extend its Christmas shutdown period by four weeks at its Smithton and Huon mills while inquiry investigates the peace deal.

The company's more than 100 employees will be forced to take paid leave and maintenance and training programs will be brought forward.

The State Government is playing its part by charging the company less for power at its mill in the Huon Valley.

Also, penalties will be scrapped for not using all of the wood under its supply contract with Forestry Tasmania.

Its executive director Evan Rolley says the delay is "devastating".

"This will cost the company many thousands of dollars many hundreds of thousands of dollars," he said.

"We lost further market in Tokyo as a consequence of these delays."

Mr Rolley rejects suggestions the company has lost face over the threat to leave the state.

"It really is, in my mind, an extraordinary demonstration of just how much the various supporters, suppliers, contractors and so on want the company to stay and they've found a way, they've found a way to help us and in return the company is helping to make it happen," he said.

The Forestry Union's Jane Calvert says workers will decide whether to support an extended shutdown.

"We're by no means out of the woods but people will be coming back to a job in the New Year in at this stage though they will be asked to take an extended period of leave for a few more weeks and under the industrial instrument that we've got with the company workers will have to take a vote on that.

The Acting Premier, Bryan Green, says the State Government is still working through the detail of its measures to keep Ta Ann's mills open.